Pennsylvania: Owners have systematically underreported their sales to the IRS and encouraged their franchise holders to do the same!
A case that makes you think about all of those businesses making their fortune quicker then any competitor in their industry. And why would they stop!?
Original article:
Two businessmen who own or collect license fees from about 20 Italian Village Pizza stores in Western Pennsylvania admitted in federal court Wednesday that they systematically underreported their sales to the Internal Revenue Service and encouraged their franchise holders to do the same…
…Veltri said all of his businesses now include “point of sale” devices to prevent underreporting of their sales.
“Everything is being recorded,” he said.
Veltri said he recently opened two new stores in Michigan, has another one opening soon in Michigan and two new stores in North Carolina.
…Assistant U.S. Attorney Stephen Kaufman said the two men were skimming cash from their businesses but keeping track of the actual sales by entering them as an “over ring” on the cash register.
“For example, if the sales were $1,305, they would enter an over ring of $13.05,” he said.
The franchise holders would do the same…